Bulgaria in the fast lane: Euro introduction in 2026 in sight!

Bulgaria in the fast lane: Euro introduction in 2026 in sight!

The EU Commission plans to publish an important convergence report next Wednesday that will assess the progress of six EU countries towards the introduction of the euro. The focus is particularly on Bulgaria, which according to reports could pave the way for the introduction of the euro from the beginning of 2026. Three senior eurozone officials expressed optimism about the forthcoming report, which will outline the fulfillment of the necessary criteria for the introduction of the euro. Currently, the euro is already used by 347 million Europeans in 20 countries, and Bulgaria would become the 21st country in the eurozone if it meets the necessary conditions.

Since joining the EU in 2007, Bulgaria has been aiming to convert its lev to the euro. The convergence report, based on the Maastricht criteria, will be crucial to the further process and will assess Member States' progress in the areas of price stability, sound public finances, exchange rate stability and the convergence of long-term interest rates. The report already shows that Bulgaria meets all the criteria with one exception.

Progress and challenges

In contrast to Bulgaria, eleven other non-eurozone countries were assessed, including Poland, Romania, Sweden, the Czech Republic and Hungary. Paolo Gentiloni, the European Commissioner for Economic Affairs, highlights the progress in this regard, but recognizes that no country has yet fully met all the criteria. In particular, Bulgaria must remain in the Exchange Rate Mechanism II (ERM II) for at least two years in order to join the euro area, as also set out in the relevant criteria.

Bulgaria has currently brought its national legal system into line with the rules of the Economic and Monetary Union. The country has successfully met the requirements in several areas, including public finance criteria and long-term interest rates. The Bulgarian Citizens hold a predominantly positive outlook; 71% of Bulgarians believe that the euro will be introduced within the next five years. Nevertheless, 64% of the population express concern about possible price increases that could be caused by the introduction of the euro. This emerges from the Eurobarometer survey, which contributes to further analysis of public opinion on the euro.

The path to the introduction of the euro

The EU Commission's convergence report is used as the basis for the proposal to introduce the euro in a member state. The reports are published every two years or at the specific request of a Member State. This shows how seriously the EU takes the issue of introducing the euro, especially with regard to the economic stability of the member states. Denmark, with its opt-out regulation, is not covered by the report, which illustrates the rigidity and at the same time flexibility of the Eurozone.

In summary, Bulgaria is on track to adopt the euro in 2026. The upcoming convergence report could act as a door opener to make these ambitious plans a reality. The development will be followed with great interest both within Bulgaria and throughout the Eurozone.